Arab Institute of Business Leaders Proposes Comprehensive Reform of Agricultural Product Distribution Circuits
The Arab Institute of Business Leaders (IACE) has unveiled a study on the reform of agricultural product distribution circuits, proposing a five-year action plan (2026-2030) to modernize the sector.
A Systemic Approach to Reform
The study, presented by expert Ahmed Ben Kheder, diagnoses the existing issues and proposes a systemic reform, broken down into practical steps to benefit all stakeholders, including producers, consumers, traders, and the state. The goal is to establish a "structured, transparent, and equitable food sovereignty."
Challenges in the Current System
The study highlights several shortcomings in the current distribution system, including:
- Informal intermediaries controlling over 50% of transactions, leading to distorted prices, massive tax evasion, lack of traceability, and weakened state institutions.
- Deteriorated infrastructure due to lack of maintenance, short-term concession contracts, and inadequate specialized expertise in municipalities.
- Abattoirs in disrepair and a lack of digital systems for tracking and monitoring.
A New Approach to Reform
The IACE proposes a three-pillar approach to reform:
- Professionalizing the Regulatory Framework: Adopting a specific code for distribution circuits, evolving to long-term contracts, and establishing public-private partnerships for infrastructure management.
- Formalizing Informal Operators: Encouraging informal operators to join the formal sector through fiscal and social incentives, leading to better control of merchandise flows and improved supply chain management.
- Digitalizing and Localizing Value Chains: Implementing an e-market platform to facilitate online sales, reduce physical transfers, and lower costs. Excess products can be valorized locally through transformation or storage.
Positive Impacts
The study identifies several positive impacts of the proposed reform:
- Increased revenue for farmers through reduced intermediaries.
- Lower prices for consumers, with improved food safety and quality guarantees.
- Integration of informal workers and reduced corruption and regional disparities.
- Improved tax revenues and better control of merchandise flows for the state.
- Reduced losses and waste, with increased investment returns in logistics and agriculture.
Implementation Phases
The action plan proposes three phases:
- Foundation and preparation (2026).
- Launch and experimentation of the e-market platform and new concession contracts (2027-2028).
- Generalization and deployment of national infrastructure, including farm markets and transformation units.
Pre-Requisites for Success
The study emphasizes the need for:
- Strong moral commitment from the highest level of government.
- Mobilization of a representative and multipolar project team.
- Unwavering involvement of all stakeholders throughout the three phases.
- Alignment between the central team and local operators.
- Reactive, transparent, and adaptive communication.
